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 Chapter 6 - What is Work for Earnings?
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          How Work and Earnings Can Affect Employees Initially Awarded Disability Annuities
          Part II - Work and Earnings
          Chapter 6 - What is Work for Earnings?
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              Introduction
          Part I - How Age Affects a Disability Annuity
          Part II - Work and Earnings
                                Chapter 5 - How Work Can Affect Your Disability Annuity
          Chapter 6 - What is Work for Earnings?
          Chapter 7 - Activities That May Be Considered Work
          Chapter 8 - Owning, Selling, Transferring a Business
          Chapter 9 - Self-Employment
          Chapter 10 - Substantial Gainful Activity
          Chapter 11 - Trial Work Period
          Part III - When Work and Earnings Indicate Recovery From Disability
          Part IV - Your Responsibility for Reporting Events
          Important Notices Chapter 6 - What is Work for Earnings?
							 
							
							
            "Work for earnings" is any activity that a disability annuitant performs for money or other form of benefit or compensation. It does not matter what the activity is called or who legally owns the business. It does not matter how the benefit or compensation is received or who benefits from it. The following are examples of work that may impact entitlement to a disability annuity.

**Example #1**: A disability annuitant owns property as an investor and receives profits from the property as dividends paid to him as an investor. The annuitant also manages and maintains the property by showing apartments, mowing the lawn, and shoveling snow. Even though the annuitant receives only dividends, the RRB may consider this work for earnings and it must be reported to the RRB.

**Example #2**: A disability annuitant forms a corporation that operates a candy shop. All of the shares in Candy Shop, Inc. are owned by the annuitant's brothers. The annuitant sits at the cash register and rings up sales but does not accept a salary. All of the profits are paid to the annuitant's brother and children as shareholders. Even though the annuitant receives no money, the RRB may consider this work for earnings and it must be reported to the RRB.

**Example #3**: A disability annuitant invests in a partnership to operate a roofing business with several friends. The other partners do the hard labor: making sales calls, climbing on roofs, and supervising other staff or employees. They hire a professional accountant to keep their financial records and to do the payroll. The annuitant answers the phone, takes messages, schedules appointments and answers questions from prospective clients, but he or she does not receive a salary. After all the salaries are paid to those working in the business, there are no profits to pay to the partners. Even though the annuitant receives no money, the RRB may consider this work for earnings and it must be reported to the RRB.

**Example #4**: A disability annuitant drives his personal car to make deliveries for his spouse's flower business. The flower business pays for the gas and a small amount for each mile driven. Even though the annuitant receives no salary or money, the RRB may consider this work for earnings and it must be reported to the RRB.

**Example #5**: A disability annuitant drives a bus for a local public school as a self-employed independent contractor. The school district makes the payment checks to the annuitant's spouse. Even though the annuitant receives no salary or money, the RRB may consider this work for earnings and it must be reported to the RRB.

**Example #6**: A disability annuitant drives a bus for a private school as a self-employed independent contractor. The annuitant's children attend the school at no charge. Even though the annuitant receives no salary or money, the RRB may consider this work for earnings and it must be reported to the RRB.

**Example #7**: A disability annuitant cares for a family member and is paid through a program sponsored by the state or a private agency. The RRB may consider this work for earnings and it must be reported to the RRB.

Work for earnings is any benefit or compensation that is received in return for effort. A "benefit or compensation" may be something monetary such as cash, salary, or dividends, but may also be anything of value such as a discount on tuition, reimbursement of expenses, precious stones or metal, jewelry, an automobile, an appliance, travel/trips, or an ownership share in a business.

**All work for earnings by a disability annuitant should be reported to the RRB**. The RRB will evaluate the reported work and earnings, and determine whether earnings exceed allowable limits and if entitlement to benefits is affected. The RRB will also consider how your work compares to the work you did for your former railroad or nonrailroad employer before you applied for your disability annuity at the RRB.
        ‹ Chapter 5 - How Work Can Affect Your Disability Annuity | 
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 Last updated: 02/14/2017